Try taking a leaf from Germany’s book

Let’s look to Germany to help Australian manufacturing. During the 1990s, Germany’s manufacturing industries were in a similar situation as Australia’s now is. In 2003, the German government made major reforms. Germany’ reduced labour costs and employer health insurance costs were trimmed; planned income and corporate tax cuts were accelerated; hiring and firing were made easier and rules protecting employees against dismissals “for economic reasons" were also loosened.

To spur job-seeking among the unemployed, jobless benefits were cut. In Germany, there are also work-sharing programs. During the GFC, this allowed employers, with the help of government subsidies, to keep workers on reduced hours instead of being laid off. In Germany’s unique system of “co-operation" union representatives have permanent seats on corporate boards. This helps ensure that labour and management are able to negotiate terms with both sides’ long-term interests in mind.

The unions in Australia need to become a lot more employer-friendly and co-operative. If the federal and state governments, manufacturing companies and unions can work together and make similar changes to those that Germany made, manufacturing in Australia could survive and maybe prosper.

The Australian government should seriously consider looking into the possibility of pegging the Australian dollar. This might be seen as very controversial but if this step was taken it would greatly help save a lot of Australian industries apart from manufacturing. As this has worked for Germany, why couldn’t it work for Australia?